These insurance companies, investment banks, and credit agencies seem to be straying from their business models in order to become traditional banks. Lincoln, Genworth, and Hartford are attempting to become Federal savings and loan holders through the Office of Thrift Supervision. Should they be approved, they would then theoretically qualify for TARP funds. The others have added Bank Holding Company to their list of services by opening branches in Utah and receiving approval from the Federal Reserve Board of Governors. They too would apparently be eligible for TARP funds once approved.

Bear in mind, there is nothing illegal with what these companies are doing; financial institutions acquire each other all the time. What struck us as fishy was the timing. Fourofthesecompanies claimed to be in good financial shape just a few weeks before applying for bailout money. As a matter of fact, Kenneth Chenault, American Express's CEO, asserted that the company's “business model is well positioned to generate earnings and excess capital even in an economic environment that is likely to be among the weakest in many years” less than a month before becoming a Bank Holding Company and, presumably, applying for TARP funds.

Again, we don't mean to accuse anyone of anything. We just want to make sure that Congress knows about this practice. They must decide if taxpayers should be footing the bill for companies that are apparently trying to jump on the gravy train.